Philippines advances with policy implementation revamp
The Central Bank of the Philippines is looking to cut its reliance on reserve requirements
The Central Bank of the Philippines (BSP) has announced a long-awaited reduction in the reserve requirement ratio, signalling a further move towards market-based monetary policy implementation.
The RRR for banks and non-bank financial institutions with quasi-banking functions will be reduced from 20% to 19%, effective from the reserve week beginning on March 2, 2018. Yet, the Philippines still has one of the highest RRRs in the world.
The reduction is “an operational adjustment” to support BSP
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